Over the past 9 years I have been oweing the IRS over $30,000. I have since switched my tax preparer and now recieving $2,500 to $5,000 tax refund annually. I now owe approx $15,000. I was told if I write a letter to the IRS they would forgive some of the penalties and possibly some of the actual money. Who do I write this letter to and what should I say?
2007-10-15 20:44:27 · 2 answers · asked by dwaindaddy 2 in Business & Finance ➔ Taxes ➔ United States
If it is unlikely that you will ever be able to pay your liability in full AND you can offer an amount that represents the reasonable collection potential of the account (that's IRS jargon) IRS can accept an Offer in Compromise to settle the account for less than 100 cents on the dollar. The package you have to submit is pretty intimidating for someone who doesn't have experience in doing it. I prepare them professionally. If you want information privately, send me email through my profile.
2007-10-16 00:52:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You owe money for past years, but are getting your refunds? Those should be being taken for what you owe, not refunded to you.
It is possible to file something called an offer in compromise (not just send someone a letter) requesting that the amount you owe be lowered. This would only be approved if the IRS agrees you'd never be able to pay all that you owe - if you're getting refunds like you say, even if they are taking them for the back taxes, you'd have a hard time getting them to believe you can't pay it all.
2007-10-16 03:51:40 · answer #2 · answered by Judy 7 · 0⤊ 0⤋